WSIB Employer Advances

by Donna, dsbookkeepingatrogersdotcom
(Ottawa, Ontario)

WSIB Wage Replacement

WSIB Wage Replacement

The company has been reimbursed by WSIB for wages we paid an injured worker. Where should I code this reimbursement on the credit side. It can't be wages, but for the life of me I can't figure out where I should put it.

section divider

Donna, correct me if I am wrong ... I believe how WSIB works is if an employee is off work from a work related injury, then the employer continues to pay the employee's wage while on leave .... and WSIB reimburses the employer for the advanced wages while on leave.

It is my understanding that normally all reimbursements are coded to an income account called something like "Expense Reimbursements". Many people like to net these against expenses but I believe GAAP states they should be recorded as income.

This means your entry would be:

DEBIT Cash in Bank (a current asset on your balance sheet)
CREDIT Expense Reimbursement (an income account on your income statement)

I'd love to hear from others as to how they would record this transaction.

You may also want to determine if CPP, EI and FWT are affected as the wages may now be a tax free benefit to the employee.

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask a Bookkeeping Question.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.

 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better

Your Learning Curve!

Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.

A Handy Reference